FinanceAsia private equity firms use controversial route to exit investments
'Continuation funds' gain popularity amid subdued market for initial public offerings
Continuation funds are controversial because the private equity firms involved are effectively sellers and buyers of the same assets. © AFP/Jiji
ECHO WONG, Nikkei staff writer
February 27, 2024 12:13 JST
HONG KONG -- The subdued market for initial public offerings in Asia is prodding private equity investors in the region to pursue a controversial strategy for exiting investments: selling assets to so-called "continuation funds" they raise themselves.